VET Student Loans (Courses and Loan Caps) Amendment Determination (No. 1) 2022

Administered by Department of Employment and Workplace Relations

Legislation au F2022L00078 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Issued by the authority of The Hon Stuart Robert, Minister for Employment, Workforce, Skills, Small and Family Business

VET Student Loans Act 2016

VET Student Loans (Courses and Loan Caps) Amendment Determination (No. 1) 2022

PURPOSE AND OPERATION

The purpose of the VET Student Loans (Courses and Loan Caps) Amendment Determination (No. 1) 2022 (Amendment Determination) is to amend Schedule 3 of the VET Student Loans (Courses and Loan Caps) Determination 2016 (Courses and Loan Caps Determination) to

  • specify the courses for which VET student loans may be approved under the VET Student Loans Act 2016 (VET Student Loans Act);
  • set the maximum loan amounts for those courses; and
  • provide for the annual indexation of the maximum loan amounts.

The full policy context and background for the Courses and Loan Caps Determination is set out in the publicly available Explanatory Statement to the Courses and Loan Caps Determination, accessible on the Federal Register of Legislation, (noting that a formal review of the Determination is now undertaken annually).

Courses listed in Schedule 3 of the Courses and Loan Caps Determination are only approved courses if provided by the approved course provider against which they are listed in Schedule 3. Schedule 3 also sets out the loan caps for each course, with those loan caps set in a manner consistent with the loans caps for courses listed in Schedule 1.

The Amendment Determination adds two courses for specific providers to Schedule 3.

Accordingly, the Amendment Determination expands the list of courses for which VET student loans are available for specified providers.

AUTHORITY

The Amendment Determination is made under section 16 of the VET Student Loans Act.

Subsection 16(1) provides that the Minister may, by legislative instrument, determine: courses of study for which VET student loans may be approved; and maximum loan amounts, or methods for working out maximum loan amounts, for those courses.

Under subsection 33(3) of the Acts Interpretation Act 1901, where an Act confers a power to make an instrument of a legislative or administrative character, the power includes a power to amend or vary the instrument.

REGULATORY IMPACT

The Office of Best Practice Regulation assessed that a Regulation Impact Statement was not required for the Amendment Determination due to the minor regulatory impact of the proposed changes (OBPR reference 21-01130).

CONSULTATION

The Government invites annual requests by listed course providers (as defined under section 27 of the VET Student Loans Act) and notforprofit providers to include additional courses in Schedule 3 of the Courses and Loans Caps Determination. In considering which additional courses to include, the Government required evidence from providers about employment outcomes, industry demand and employer support for those courses, and their track record of student progression and completion through those courses.

As a result, two additional courses were approved for specified providers and added to Schedule 3 by the Amendment Determination.


STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

VET Student Loans (Courses and Loan Caps) Amendment Determination (No. 1) 2022

The VET Student Loans (Courses and Loan Caps) Amendment Determination (No. 1) 2022 (Amendment Determination) is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Amendment Determination

The Amendment Determination amends Schedule 3 of the VET Student Loans (Courses and Loan Caps) Determination 2016 (Courses and Loan Caps Determination). The Courses and Loan Caps Determination sets out the courses of study for which VET student loans can be approved under the VET Student Loans Act 2016 (VET Student Loans Act) and the maximum loan amounts for those courses, which is subject to annual indexation.

Courses listed in Schedule 3 of the Courses and Loan Caps Determination are only approved courses if provided by the approved course provider against which they are listed in Schedule 3. Schedule 3 also sets out the loan caps for each course.

The Amendment Determination adds two courses for specific providers to Schedule 3.

Accordingly, the Amendment Determination expands the list of courses for which VET student loans are available for specified providers.

Human rights implications

This Amendment Determination engages the following human rights:

  • Right to Education – Article 13, International Covenant on Economic, Social and Cultural Rights (ICESR);
  • Right to Work – Articles 6(1) and 7 of the ICESCR.

Right to Education

The Amendment Determination engages the right to education, set out in Article 13 of the ICESR. The right to education recognises the important personal, societal, economic and intellectual benefits of education and provides that higher education shall be made equally accessible to all, on the basis of capacity, by every appropriate means, and in particular by the progressive introduction of free education.

The right to education is positively engaged by the measures contained in the Amendment Determination because these amendments will ensure that students have access to educational opportunities in courses that prepare students to meet industry needs within the vocational education and training (VET) sector, thereby providing students with educational opportunities in relevant fields that lead to genuine employment opportunities.

To the extent that the Amendment Determination is interpreted in any way as to limit students’ access to particular courses and confine course choice, this is justifiable to ensure fiscal accountability and quality output from providers. The limit on which courses are eligible for loan access ensures that students are undertaking courses that are more likely to result in an employment outcome. This limitation is necessary and proportionate to the policy objective, as the measures are designed to protect students by enhancing educational and employment outcomes, ensuring they are receiving value for money, and that there is a high level of quality assurance and transparency in the training courses.

The Amendment Determination is compatible with, and in furtherance of, the right to education.

Right to Work

The Amendment Determination engages the right to work, set out in Articles 6 and 7 of the ICESCR. The right to work recognises the right of everyone to the opportunity to gain their living by work, which they freely choose or accept and under conditions where their fundamental political and economic freedoms are safeguarded. Positive steps by States Parties towards the progressive realisation of the right to work include assisting individuals to identify and access available employment by enabling and supporting access to technical and vocational education.

VET equips students with workplace specific skills, designed by industry, for a wide range of occupations. It also represents an important economic and social opportunity for those seeking new employment opportunities, or those seeking to retrain.

 

The Amendment Determination is intended to ensure the VET student loans program is focused on providing support for students in respect to courses that have a high national priority, align with industry needs, contribute to addressing skills shortages and lead to employment outcomes.

 

This Amendment Determination allows the Courses and Loan Caps Determination to be updated with approved courses to ensure that Commonwealth income contingent loans are available to support students in VET training courses where genuine employment opportunities exist.

The Amendment Determination is compatible with, and in furtherance of, the right to work.

Conclusion

The Amendment Determination is compatible with human rights and to the extent that it may limit human rights, those limitations are reasonable, necessary and proportionate.

 

Minister for Employment, Workforce, Skills, Small and Family Business,

the Hon Stuart Robert MP

VET Student Loans (Courses and Loan Caps) Amendment Determination (No. 1) 2022

EXPLANATION OF PROVISIONS

Section 1: Name

  1. This is a formal provision specifying the name of the instrument to be the VET Student Loans (Courses and Loan Caps) Amendment Determination (No. 1) 2022.

Section 2: Commencement

2.      Subsection 2(1) contains a table that sets out the commencement information for the instrument. Each provision of the instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table and any other statement in column 2 has effect according to its terms.

 

3.      The table has the effect of providing that sections 1 to 4, Schedule 1 and anything else in the instrument commence the day after the instrument is registered on the Federal Register of Legislation.

Section 3: Authority

4.      Section 3 provides that the making of the instrument is authorised under section 16 of the VET Student Loans Act 2016.

Section 4: Amendment in Schedule

5.      Section 4 provides that the VET Student Loans (Courses and Loan Caps) Determination 2016 (Courses and Loan Caps Determination) is amended as set out in Schedule 1 to the instrument.

Schedule 1 – Amendments

Item 1

6.      Item 1 inserts two rows into the table in Schedule 3 of the Courses and Loans Caps Determination setting out the details of an additional two courses for two specific approved course providers (and the applicable loan caps for those courses). The rows are to be inserted into the table in alphabetical order by approved course provider.

Item 2

7.      The insertion of the additional two rows mentioned in Item 1 above will disrupt the numeric order of the item numbers in the column headed ‘Item’ of the table in Schedule 3 of the Courses and Loan Caps Determination. Item 2 therefore provides that all numbers and alphanumeric characters in the column headed ‘Item’ in the table in Schedule 3 are to be renumbered by row order, starting at 1. This means the item number for each row of the table is to be renumbered in accordance with its numeric order, with alphanumeric characters replaced with numbers.

Overview

The VET Student Loans (Courses and Loan Caps) Amendment Determination (No. 1) 2022 (Amendment Determination) was enacted to amend the VET Student Loans (Courses and Loan Caps) Determination 2016. The purpose of this amendment is to specify the courses for which VET student loans may be approved, set the maximum loan amounts for these courses, and provide for the annual indexation of the maximum loan amounts. This Amendment Determination was made under section 16 of the VET Student Loans Act 2016 and is compatible with the human rights recognised or declared in the international instruments listed in the Human Rights (Parliamentary Scrutiny) Act 2011. The policy objective of the Amendment Determination is to ensure that VET student loans are available for courses that align with industry needs and lead to genuine employment opportunities, thereby enhancing educational and employment outcomes for students. The Amendment Determination expands the list of courses for which VET student loans are available for specified providers by adding two courses to Schedule 3 of the Courses and Loan Caps Determination. These amendments positively engage the right to education and the right to work, as they provide students with access to educational opportunities in courses that prepare them to meet industry needs within the VET sector. The limitations on course choice are considered justifiable to ensure fiscal accountability and quality output from providers, thereby ensuring that students are undertaking courses that are more likely to result in an employment outcome. The Amendment Determination ensures that the VET student loans program remains focused on providing support for students in respect to courses that have a high national priority, align with industry needs, contribute to addressing skills shortages, and lead to employment outcomes.

Scope and Application

The VET Student Loans (Courses and Loan Caps) Amendment Determination (No. 1) 2022 applies to courses of study for which VET student loans may be approved under the VET Student Loans Act 2016. The Amendment Determination specifies the maximum loan amounts for these courses and provides for the annual indexation of those loan caps. It amends Schedule 3 of the VET Student Loans (Courses and Loan Caps) Determination 2016 by adding two courses for specific providers. These courses must be provided by the approved course providers listed in Schedule 3 to be considered approved courses. The Amendment Determination applies nationally across Australia, as the VET Student Loans Act is a Commonwealth Act. There are no stated exclusions or exemptions in the Amendment Determination, though the approval of courses and setting of loan caps is subject to conditions such as industry demand, employment outcomes, and quality assurance by providers. The Minister for Employment, Workforce, Skills, Small and Family Business has the authority to make this Amendment Determination under section 16 of the VET Student Loans Act, and the power to amend the Courses and Loan Caps Determination is implicit in the legislative framework. The scope of the Amendment Determination may be further extended or restricted through subordinate instruments, such as additional amendments to the Courses and Loan Caps Determination.

Key Provisions

The VET Student Loans (Courses and Loan Caps) Amendment Determination (No. 1) 2022 amends Schedule 3 of the VET Student Loans (Courses and Loan Caps) Determination 2016 to add two new courses for specified providers, thereby expanding the list of courses for which VET student loans are available (Section 4, Schedule 1). The amendment specifies the courses for which loans may be approved, sets the maximum loan amounts for those courses, and provides for the annual indexation of the maximum loan amounts (Section 16 of the VET Student Loans Act 2016). The courses must be provided by approved course providers, and each course has a specified loan cap (Schedule 3 of the Courses and Loan Caps Determination). This amendment introduces two additional courses, each with its own loan cap, for the specified providers. The Amendment Determination imposes specific obligations on the parties it governs, primarily the approved course providers. These providers must now offer the two additional courses listed in Schedule 3, ensuring that these courses align with industry needs, contribute to addressing skills shortages, and lead to employment outcomes (Explanatory Statement). The Amendment Determination requires that these courses have demonstrated evidence of employment outcomes, industry demand, employer support, and student progression and completion rates (Consultation section of the Explanatory Statement). Approved course providers must also ensure that the courses they offer comply with the loan caps specified in Schedule 3 and that the loan amounts are indexed annually. Breach of the obligations imposed by the Amendment Determination may lead to various consequences. While the specific offences and penalties are not detailed within the Amendment Determination itself, violations of the VET Student Loans Act 2016 can result in civil and criminal penalties. For instance, misleading or deceptive conduct in relation to VET student loans can attract penalties under the Competition and Consumer Act 2010. Furthermore, non-compliance with the requirements for approved course providers, such as failing to provide courses that meet the specified criteria or mismanaging loan funds, could lead to enforcement actions by the relevant authorities, including fines or other sanctions. The maximum penalties for such breaches would depend on the specific nature of the offence and the relevant legislative provisions.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.